Halliburton Company (HAL)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.05 | 2.21 | 2.13 | 2.12 | 2.06 | 2.14 | 2.14 | 2.14 | 2.05 | 2.10 | 2.15 | 2.19 | 2.31 | 2.39 | 2.29 | 2.25 | 2.14 | 2.30 | 2.22 | 2.11 |
| Quick ratio | 1.28 | 1.38 | 1.34 | 1.30 | 1.27 | 1.32 | 1.32 | 1.34 | 1.30 | 1.33 | 1.39 | 1.39 | 1.56 | 1.56 | 1.41 | 1.35 | 1.27 | 1.34 | 1.26 | 1.23 |
| Cash ratio | 0.43 | 0.40 | 0.38 | 0.35 | 0.40 | 0.38 | 0.39 | 0.36 | 0.44 | 0.40 | 0.47 | 0.48 | 0.71 | 0.67 | 0.61 | 0.58 | 0.58 | 0.54 | 0.44 | 0.27 |
Halliburton Company has shown consistently strong liquidity ratios over the past few years. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has generally remained above 2.0, indicating a healthy liquidity position.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also been favorable, consistently above 1.0. This suggests that Halliburton has an adequate level of liquid assets to cover its short-term liabilities without relying on selling inventory.
The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents, has shown a stable trend above 0.3. Although the cash ratio has decreased slightly in recent periods, it still indicates that Halliburton maintains a sufficient level of cash to cover its immediate obligations.
Overall, based on the liquidity ratios presented, Halliburton Company appears to have a strong ability to meet its short-term financial obligations and manage its liquidity effectively.
See also:
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -57.35 | 260.30 | 66.36 | 310.85 | 189.70 | 226.03 | 158.22 | 62.03 | -20.47 | -28.07 | 17.94 | 115.01 | 99.84 | 277.93 | 307.70 | 154.00 | 141.35 | 127.08 | 122.65 | 132.49 |
The cash conversion cycle (CCC) is a measure of how efficiently a company manages its working capital, indicating the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
Analyzing the CCC data for Halliburton Company from March 31, 2020, to December 31, 2024, reveals fluctuations in the efficiency of its working capital management over the period. The CCC started at 132.49 days in March 2020 and decreased to 17.94 days by June 2022, indicating an improvement in the company's ability to convert resources into cash. However, the CCC sharply increased to 307.70 days by June 2021, reflecting potential inefficiencies in working capital management.
By September 2022, the CCC became negative, lasting until December 2024, suggesting that Halliburton was able to convert its investments into cash faster than it took to pay off its liabilities. A negative CCC indicates that the company is operating more efficiently, potentially due to better inventory turnover or accounts receivable collection.
Overall, the trend in Halliburton's CCC shows periods of inefficiency followed by significant improvements and, eventually, negative cycles indicating efficient working capital management. Monitoring the CCC is crucial for understanding how effectively the company is managing its liquidity and operating cash flows.